Dynamics of the LNG Industry

NAME OF THE COURSE
Dynamics of the  LNG Industry
 
CERTIFICATION
Dynamics of the  LNG Industry
 
COURSE OVERVIEW
Our world-leading events bring scale, knowledge and gravitas to promote innovation and technology that changes people’s lives. Whether it is solar and renewables in Africa, education technology in Australia, payments and e-commerce in Asia, railways in the Middle East, orphan drugs in the Americas, or aviation in Europe, our events make a difference.
We are creative, organic and customer-focused, curating content for the specific industry and location of each event. Whether you’re looking to make new connections, introduce the product or inspire change in your industry, we invite you to join us as agitators of change.
 
TRAINING DURATION
Total Training Hours : 10-14 Hours
Training Duration      : 2 Days
Total Training  Days  : 1-2 Working Days
 
TRAINING SCHEDULE
Weekdays (Sunday to Thursday)
Regular Sessions : 4 – 6 Hrs Per day (9am to 2pm or 3.00pm to 9.00 pm)
Food & refreshments Included
Weekends (Friday & Saturday)
Fast Track Sessions: 8 Hours per day (9am to 5pm)
Food & refreshments Included
 
CERTIFICATION
Globally recognized certificate from “Kings Global Career Academy”
 
TEST
No
 
LEARNING AIDS
Yes
 
COURSE MATERIAL
Hard & Soft Copies of Study Material
 
LANGUAGE OF INSTRUCTION
English
 
INSTRUCTOR HELPLINE
Yes
1. Email
2. Social Media (For Emergency requirements)
 
REGISTRATION REQUIREMENTS
1. Passport Copy
2. Curriculum Vitae
3. Passport size photographs
4. Course Fee
 
MODE OF PAYMENT
Cash / Cheque / Credit Card / Bank Transfer.
 
WHO SHOULD ATTEND 
  • New or recent LNG traders
  • Staff with the responsibility to establish or consolidate recently established LNG trading businesses
  • Gas buyers seeking to optimize their supply position and manage seasonal demand variations
  • Staff from well-established trading entities but do not have a strong background in LNG trading
  • Line managers who are seeking to better integrate LNG trading into their business units, or who are considering setting up an LNG trading business
  • Support professionals, including from professional service firms, who are seeking to better understand LNG trading
  • Government officials involved in oversight of companies that trade LNG
  • Shipping companies and terminal operators that need to understand the short-term business
 
COURSE BENEFITS
  • Provide a conceptual framework to understand LNG trading and to participate effectively in developing an LNG trading business
  • Provide practical tips, tools and tactics to devise and execute sound LNG trading strategies
  • Build an understanding of the commercial, operational and logistical aspects of LNG trading, how they interact, and how successful traders manage that interaction
  • Help attendees bridge between the course materials and their specific jobs and business requirements, with the immediate payoff to their careers and sponsoring organizations
  • Give attendees direct, in-depth exposure to leading experts who have worked in a variety of roles across the extended LNG value chain
  • Provide hands-on exposure and real-life experience through case studies, exercises, and TwoTwoFive’s unique computer-based LNG simulations
 
COURSE CONTENTS
 
The Context: Why Trade?
  • Dynamic global Natural Gas and LNG market
  • Industry unbundling and growth of liquidity
  • An increasing number of import terminals
  • Growth and diversity of LNG fleet
  • Diverse world gas price indices
  • Portfolio players, traders, end-users
  • Margin gains from shipping and price arbitrage
  • Roles and functions in the broader LNG trading team
 
Mechanics of Trading
  • How is trade facilitated
  • Trading terminology
  • Market structure
 
LNG Trading in Asia
  • Asian gas market overview
  • How LNG is traded in Asia
  • Major prices indices and key drivers
  • The future development of the Asian gas market
 
LNG Trading in the Atlantic Basin
  • European gas market overview
  • Major price indices
  • How gas is traded in Europe
  • North America gas market overview
  • How gas is traded in North America
 
Case Study: Panama Canal
 
Trading Gas Prices – Flat price Simulation
  • Introduction to the IGNITE simulation model
  • Interpret news items and form a market view on a flat price
  • Execute futures trades to go long or short gas flat price
  • Manage trades within limits and generate P&L
 
LNG Trading Opportunities I
  • Arbitrage
  • Fixed vs Floating price
  • Tenders
  • LNG Swaps
 
LNG Trading Opportunities II
  • Reloads
  • Sleeving
  • Floating storage
  • Real options trading: the NW Europe backstop
 
Case Study: Reloads
 
LNG Negotiation Simulation
  • Portfolio of short and long positions
  • Negotiate with other teams to cover portfolio exposure
  • Calculation of potential freight
  • Ensure executed cargoes are matched appropriately
 
How to Plan an Optimal LNG Supply Portfolio
  • Development of LNG Master Sales Agreements
  • Contract optionality
  • LNG liquefaction tolling
  • Short term LNG supply and demand tenders
  • Spot cargo trading
  • Managing LNG/gas quality issues
 
Optimisation of LNG Storage and Shipping
  • Terminal use agreements
  • LNG loading constraints and procedures
  • Loading and unloading window and penalties
  • Role of storage and shipping
  • Summary of shipping costs
  • The long-term LNG ship charter market
  • The spot and short-term ship charter market
  • LNG boil-off, cool down issues and LNG heel
  • Voyage optimisation
  • Swaps and a shipping optimisation tool
 
Exercise: Shipping
  • Calculate cost of chartering for a WAF to Japan voyage
 
Practicalities and Procedures of LNG Trading
  • Term sheet structure and key features
  • Key features of LNG SPA’s and MSA’s
  • Credit requirements
  • LNG charter parties
  • Parcel sizes and safe loading ranges for ship tanks
  • Ship vetting and terminal clearance process
  • Ship compatibility with the terminal
  • Cargo inspection and custody transfer
 
Risk Management
  • Major risks such as basis risks
  • Reliability, liquidity and transparency of LNG price indexes
  • Title transfer and taxation issues
  • Changing appetites for credit and other risks
  • Risk management tools – futures, swaps, letters of credit
 
Pricing Risk Management and forward curves
  • Constructing an LNG forward curve
  • Managing the risk within an LNG portfolio
  • Optimising risk vs reward
 
Managing LNG Complexities
  • S- Curves (types and peculiarities)
  • Brent (3;0;1) or (3;2;1) or other formulas for pricing
  • Different types of paper instruments
  • Paper hedging techniques
  • Hedging S-curve structures in LNG contracts
 
Hedging Simulation
  • Determine price exposure of a given portfolio
  • Hedge position to lock in profit
  • Review exposure change as new deals are executed
  • Unwind hedges as cargoes price in and out on a daily basis
 
Advanced Trading and Pricing Strategies
  • Portfolio effect
  • Optionality at terminals
  • Contract optionality
  • Floating Storage
  • Diversions
 
Case Study: Trading at Tangguh
 
Back Room & Corner Office
  • Integrating trading into the broader organization
  • Policies, processes, tools
  • Oversight & key metrics
 
Asian and Middle East Physical Simulation
  • Identify price dislocation and arbitrage opportunities
  • Trading LNG cargo differentials and arbitrage
  • Buy and sell FOB and DES cargoes
  • Manage price risk
 
Current Key Issues and Opportunities
  • Asian market reform
  • LNG hubs
  • Paper trading
  • Development of LNG price indices
  • The long buyers’ market
  • Aggregators vs. traders
 
Upside Sharing Exercise
  • Calculate the commercial value of two options
  • Determine whether to choose the upside sharing option
REGISTER